The result of all this massive government intervention was the explosion of high-risk, questionable loans and other expenditures that brought us to the mess we see today. Millions of Americans bought homes they couldn't afford; Wall Street sank billions of dollars into bad investments.
Clearly, this had nothing whatsoever to do with the free market. It was caused by far too much, not too little, government interference in the market.
In a genuine free market, lenders would exercise caution, because they would quickly go out of business if they made too many poor loans. The frenzy we saw in the past few years would not occur.
A free market is the best protection society has against such a destructive build-up of bad investments.
The answer is not more regulation. It was regulation that made this mess possible. And any new regulation will be written by politicians under the influence of the very corporations being regulated.
The answer is the ending of the disastrous and destructive government interference in the finance industry, and the creation of a genuine free market.
Liberator Online - October 6, 2008
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